Multiple Choice: Capital Stock Select the correct answer for each of the following:

1, Which of the following terms is not associated with corporate stock?

a. Debentures.

b. Options.

c. Preferred.

d. Treasury.

2. A stock issue carries a fixed dividend rate, has a fixed liguidation value, and gains the right to vote if its dividend is not paid when scheduled. This stock is probably labeled:

a. Preferred.

b. Common.

c. Treasury.

d. Callable.
A common stockholder shares in the profits of the corporation:

a. On a proportionate basis with all other common shareholders.

b. After the claims of creditors have been met.

c. After claims of the preferred shareholders have been met.

d. All of the above.
Which of the following statements about capital stock is true?

a. The right to vote can never be withheld by the corporation from any class of capital stock.

b. Common stock does not have a fixed dividend and sometimes pays no dividend at all.

c. Preferred stock usually has a fixed dividend and never shares in profits beyond that amount.

d. Once a share of common stock is issued, it must remain outstanding until the company is liquidated.